A brief overview of the economies of the Caribbean provides a context to discuss the state of the financial sector and its potential for development.
... See More + The countries or territories covered are The Bahamas, Barbados, Belize, the Dominican Republic, Guyana, Haiti, Jamaica, Anguilla, Antigua & Barbuda, Dominica, Grenada, Montserrat, St. Kitts & Nevis, St. Lucia, and St. Vincent & Grenadines, Suriname, and Trinidad & Tobago. This report focuses on the impact that the region's governments can have in promoting financial sector development, emphasizing governmental fiscal management, and promoting market-based incentives and sound macroeconomic policies. The role of such policies is underscored to assure efficient and stable financial systems for transferring financial resources into productive sectors at reasonable risks. Also discussed are the major areas where harmonizing regulatory norms and integrating the region's financial industry are impacted by factors such as 1) the financial sector's level of efficiency and the cost of intermediation; 2) the need for economic and financial diversification to reduce geographic and sectorally concentrated risks; 3) developing regulatory consistency in supervision across the various financial institutions; and 4) promoting an enabling macroeconomic and regulatory framework to develop instruments for mobilizing longer term capital.
See Less -

The Government of Montserrat has prepared a National Environmental Action Plan (NEAP) in order to assess the key environmental problems facing Monteserrat, and devise policies to manage the country's natural and cultural resources better.
... See More + The NEAP has been produced as part of a regional initiative to improve national environmental planning and regional donor coordination resulting from the June 1992 meeting of the Caribbean Group for Cooperation in Economic Development (CGCED). The NEAP will be integrated directly into the Public Sector Investment Program for 1994-96 (PSIP) and National Development Plan. The Government ofMonteserat is committed to the implementation of the NEAP. Monteserrat is a small mountainous volcanic island of 102 sq km whose traed itional lush green beuaty has earned it the title "Emerald Isle" of the Caribbean. With a low stable population of under 11,000 people, and consequently low human pressure on the land, Monteserrat represents one of those unstressed, peacefully idyllic island environments. Because of the concentration of resources in a small place, intensive forms of resource utlization have been the norm. Island environmentsFragile island environments experience great difficulty in recovering from intensive perturbations. Thus, early agricultural practices so dramatically altered the disposition of forests on the island and depleted the soil that in a number of areas agriculture had to be abandoned. The original pristine tropical rain forest h had to be abandoned. The original pristine tropical rain forest has not come back and stress is manifested in the environment through the appearance of scrubby secondary forests. This impairment of the island's lushness has been exacerbated by the island's vulnerability to natural disasters. After hurricanes, the natural regeneration of vegetation is being threatened and reversed by the problem of overgrazing by loose livestock, particularly goats. The consequences of this for soil and water conservation and water purity have not escaped the Government's attention. Small islands are also prone to depletion of their non-renewable natural resources. Such has been the case until recently with the mining of beach sand for construction purposes. This has left the once beautiful black sand beaches devastated. Government has already demonstrated a commitment to sound environmental decision-making by placing a ban on beach sand mining and by moving to enforce the impoundment laws on loose livestock. A national effort is now required in terms of integrated resource management and waste management.
See Less -

This report addresses Montserrat's recent economic performance and the means for achieving long-term economic growth through continuation of Government efforts to broaden the economic base and maintain prudent fiscal management.
... See More + It points to marketing problems, poor transport facilities and inadequate extension services that have hindered agricultural growth, and discusses Government efforts in an Agricultural Rehabilitation Project designed to stop the decline in the sector. The report proposes fuller exploitation of the tourism sector by increasing the level of advertising and expanding tourist facilities and an investment program that accords priority to projects which support directly productive sectors -- agricultural rehabilitation, industry credit, factory building, and tourism promotion.
See Less -

Economic growth in Montserrat slowed to two percent in 1982 compared to an annual average of eight percent during the previous four years. This slowdown is a result of stagnation in tourist arrivals; declines in the output of construction, agriculture, and manufacturing; and lower levels of public investment.
... See More + Meanwhile the current account deficit of the balance of payments rose substantially to reach US$14 million, forty-eight percent of GNP. Agriculture has been in a state of decline for several years. Production of cotton has proceeded well, but the output of most food crops is considerably below potential. A restructuring of institutions in the industrial sector is urgently needed. Tourism facilities and promotion efforts should be improved, particularly if the government decides to proceed with the Little Bay project. The government needs to strengthen its capacity to develop and analyze new project proposals. It should aim to increase the domestic contribution to the capital program while developing projects which will attract donor support.
See Less -

The economy of Montserrat continues to perform satisfactorily with an estimated rate of growth of 4.6 percent in 1981. Inflation fell rapidly to 7 percent in 1981 and public finances continue to improve.
... See More + The Government is trying to revive agriculture, although marketing and extension need more attention. New industries had been attracted. It is advisable that the construction of new factory shells by the Government proceeds in line with demand. Additional efforts to promote tourism during the slack season are required. The credit operations of the Development Financial and Market Corporation remain non-viable. There are good prospects for continued growth of the economy. Debt servicing remains very low but it cannot be foreseen at present that Montserrat will be able to borrow externally on conventional terms. Therefore, in order to implement its investment program, Montserrat will continue to require the external assistance on concessionary terms.
See Less -

Montserrat's economy is largely determined by tourism-cum-construction and, to a lesser extent, agriculture. Economic growth is continuing at a satisfactory rate, and public sector finances have been improving.
... See More + However, the balance of payments developed large trade deficits in 1979 and 1980. The authorities have implemented some of the recommendations previously made by the Bank with varying degrees of success. Currently, the government is taking steps to provide land to small farmers. There is a need to provide storage facilities, marketing information, and regular transportation. The government is making serious efforts to promote tourism, particulary the development of hot water springs. The need to improve and enlarge school facilities and to provide training for teachers remains. The narrow resource base of the country limits the rate of economic growth. The country will have to continue relying on capital grants and concessional loans for financing its development program.
See Less -

After a disappointing growth performance during 1977-78, Montserrat's economy emerged from stagnation. This performance reflects the expansion in construction and tourism.
... See More + In contrast, the performance of agriculture continued to be very disappointing and production of the main crops declined sharply. Despite growth in export earnings, the deficit in the current account balance of payments widened. Formulation and implementation of a comprehensive land use and land tenure policy is a major agricultural issue; others include establishing effective extension services, a soil and water conservation program, and the improvement of credit, marketing, and storage facilities. In industry, government has established and managed many enterprises, but private investment needs to be pursued. Efforts are being made to expand and diversify the tourism sector. Last year's recommendations for economic and social infrastructure remain. Unavailability of external resources has limited implementation of new projects. Montserrat will continue to need capital grants and concessional loans for financing its development program.
See Less -

Retiree tourism is and will continue to be a vital part of the Montserrat economy, but the specialized character of the sector limits its labor-absorptive capacity as compared with more conventional visitor tourism.
... See More + Projects in agriculture and industry that allow for labour absorption through economic diversification are being initiated, although the retiree tourism-cum-construction industry is likely to dominate the economy in the foreseeable future. The economy should experience moderate growth, but dependence upon external assistance needs to be reduced, which will require reduction of public consumption, restraint in current expenditures, and increased revenues. If it is to attain viability, Montserrat must become part of a larger economic unit. If provision of the proposed services are attempted on a unilateral basis, the resulting financial burden would be unacceptable.
See Less -

Given limited natural resources and the difficulties of external communications, the overriding development issue in Montserrat is that of increasing productive activity with gainful employment for the population.
... See More + Three areas offer the potential for achieving this objective: (i) expansion and diversification of the tourist industry which has traditionally served a retiree population; (ii) agricultural development based on vegetable and fruit production, with a view towards processing to absorb surpluses and facilitate marketing; and (iii) attraction of offshore and other light industry for employment generation. A major problem is the need to become increasingly independent of British budgetary assistance; higher revenues would require increasing the tax base through higher levels of economic activity. The major projects, which are described, concern fruit crops, irrigation, soil conservation, housing, the dairy industry, the leather industry, match manufacturing, apparel manufacturing, small scale industry, plastics industry, secondary education, and technical assistance.
See Less -